TaxBit Raises $100M in Bid to Take Crypto Taxation Software Global
The Utah-based startup roared out of stealth mode with backing from Paradigm and Tiger Global.
Cryptocurrency tax automation firm TaxBit raised $100 million in a Series A funding round led by crypto investment fund Paradigm and Tiger Global.
The three-year old startup, which builds tax assistance tools for U.S. crypto exchanges and customers, told CoinDesk it will more than double its 40-odd headcount as it prepares to add even government clients to the list.
TaxBit’s software powers behind-the-scenes number crunching for exchanges in order to give crypto traders a handle on their tax burdens. Going into the 2021 tax season, TaxBit founder Austin Woodward told CoinDesk his firm has already generated over 1 million reports for exchanges like Gemini.
Gemini founders Tyler and Cameron Winklevoss invested in TaxBit’s Series A, as did PayPal Ventures and CoinBase Ventures. The VC trio led a separate “strategic investment” in TaxBit earlier this year.
The eye-popping raise will allow the historically hush-hush, Utah-based firm to explode into the global crypto tax field, Woodward said. First up is a U.K. debut in the next few months followed by a smattering of other international markets.
Along the way, TaxBit will continue integrating its B2B software across more U.S. exchanges, though Woodward wouldn’t say which ones.
Woodward even hinted a government partnership is fast approaching, cryptically citing the City of Miami’s bold bitcoin strategy.
“The reason for the big funding is because that's what it takes to go and build an asset, a platform, that can enable an entire asset class. Like, that's how broad our mission is,” Woodward said.
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